The growth of Estonia’s gross domestic product (GDP) accelerated to an annual rate of approximately 6% in the third quarter of 2010, according to an estimate published by the Finance Ministry on Wednesday.
“Robust growth is supported mainly by the acceleration of the growth trend of the industrial sector on the back of export. In addition, positive developments took place in the transport sector and financial sector,” said Erki Lõhmuste, adviser at the ministry’s macroeconomics department. In the transport sector, transit and export-import services, and financial sector, profits of commercial banks are worth mentioning, he said.
In the first quarter of this year the Estonian economy grew 2.0% and in the second quarter the rate of growth was 3.1%. Statistics Estonia is scheduled to publish its flash estimate of third-quarter GDP growth on 11 November.
Lõhmuste said in his commentary that demand of the external environment continues to be strong and this has enabled Estonia to significantly boost export volumes. In the third quarter the pre-crisis level was achieved in exports. “Even though import is showing solid growth figures too, because of weak internal demand its level remains far behind the level of the period of rapid growth,” he said.
The contribution of private consumption in the third quarter may be slightly positive despite the accelerating price growth, largely thanks to the strengthening of car sales that started in spring. The decline in investments could have stopped and the contribution of inventories should be solidly positive just like in the second quarter, the adviser added.